The Capital Market Authority (CMA) has urged investors in Kenya to be wary of trade currencies by unlicenced firms, media reports said. The warning comes after steep movements seen in Shilling value and is in line with investor protection mandate.
Members of the public are expected to only invest through licenced entities to receive protection offered by CMA. It is reported that Cytonn Asset Management is the only licenced firm in the country It licenced to function as a fund manager and a Real Estate Investment Trust (REIT) manager. The firm manages funds that come under the approved Collective Investment Schemes which include Cytonn Money Market Fund; Cytonn Balanced Fund, Cytonn Equity Fund, Cytonn Africa Financial Services Fund, Cytonn Money Market Fund, and Cytonn High Yield Fund.
CMA Acting Chief Executive, Wyckliffe Shamiah, told the media, “Investors should only invest through licensed and approved entities to enable them to get the protection offered by the Authority through the capital markets legal and regulatory framework. Investors who invest in unregulated and unapproved entities risk loss of their investments with no recourse afforded to them under the capital market’s regulatory framework. Investors should undertake due diligence and check the license status of any entity marketing investment opportunities and purporting to be licensed by the Authority from the CMA website www.cma.or.ke.”
CMA has firmly said that action will be taken against any individual or entities investing in businesses in the capital markets industry without licences. Those affected by the illegal entities are requested to contact the Capital Markets Fraud Investigation Unit or the CMA.